immediate annuity

noun

1. an annuity bought with a single premium, with payments to the annuitant to begin at the end of one payment period, as a month or a year.

immediate annuity

noun

1. an annuity that starts less than a year after its purchase Compare deferred annuity

Example Sentences

Now may be a good time for retirees to buy an immediate annuity, since payouts are the highest they’ve been in a decade, says Rob Williams, managing director of wealth management at Charles Schwab.

From Seattle Times

But buying an immediate annuity — also known as an income annuity or a fixed immediate annuity — is effectively irreversible, so you’ll want to choose carefully.

From Seattle Times

If you don’t have enough guaranteed income to cover essential living costs, though, an immediate annuity could fill in the gap, says Wade Pfau, author of “Retirement Planning Guidebook.”

From Seattle Times

The money used to buy an immediate annuity won’t be considered part of your retirement funds when it’s time to calculate required minimum distributions, which usually must begin at 73.

From Seattle Times

An immediate annuity is an insurance product that provides guaranteed income: You give an insurer a chunk of money, and the company gives you a stream of payments that can last for life.

From Seattle Times